MIRA INFORM REPORT

Report No. :	322319
Report Date :	14.05.2015

IDENTIFICATION DETAILS

Name :	LOKMANGAL AGRO INDUSTRIES LIMITED
Registered Office :	Lokmangal House, 8536-A/11, Murarji Peth, Near Old Poona Naka, Solapur-413001, Maharashtra
Tel. No.:	91-217-2623522/ 2735517
Country :	India
Financials (as on) :	31.03.2014
Date of Incorporation :	16.10-1998
Com. Reg. No.:	25-012974
Capital Investment / Paid-up Capital :	Rs. 999.667 Million
CIN No.: [Company Identification No.]	U01122PN1998PLC012974
IEC	3103009054
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
PAN No.: [Permanent Account No.]	AAACL7933N FT001
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in manufacturing of sugar, distillery products.
No. of Employees :	800 (Approximately) (Office)

RATING & COMMENTS

MIRA’s Rating :

B (30)

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :	USD 3500000
Status :	Moderate
Payment Behaviour :	Slow but correct
Litigation :	Exist
Comments :	Subject is an established company having moderate track. The management has reported deterioration in the performance of the company during FY 2014. There seems drastic dip in the net profitability of the company. There is an unfavorable gap between trade receivables and payables which may affect liquidity position of the company. Further, it has low reserves. However, the rating derives strength from experienced promoters with established track in the sugar industry. Trade relations are fair. Business is active. Payment terms are slow but correct. In the view of aforesaid, subject can be considered for business dealing with some caution.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EXTERNAL AGENCY RATING

Rating Agency Name	CARE
Rating	Long Term Rating (BB+)
Rating Explanation	Inadequate quality and high credit risk.
Date	April 23, 2015

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

INFORMATION PARTED BY

Name :	Mr. Mahendra
Designation :	Executive
Contact No.:	91-127-2735517
Date :	13.05.2015

LOCATIONS

Registered Office :	Lokmangal House, 8536-A/11, Murarji Peth, Near Old Poona Naka, Solapur-413001, Maharashtra, India
Tel. No.:	91-217-2623522/ 2735517
Fax No.:	91-217-2284176/2735619
E-Mail :	lokmangal_agro@yahoo.com
Website :	www.lokmangal.com
Location :	Owned
Factory:	209/18/1A, 2nd Floor, Timeles Learining Technologies Building, Range Hills Road, Opposite Symphony Hotel, Bhosale Nagar, Pune-411020, Maharashtra, India
Tel. No.:	91-20-25560410

DIRECTORS

As on: 30.09.2014

Name :

Mr. Mahesh Satishchandra Deshmukh

Designation :

Director

Address :

13 asahydrinagar, Hotgiroad, Solapur-413004, Maharashtra, India

Date of Birth/Age :

04.06.1979

Date of Appointment :

30.09.2009

PAN No.:

AGXPD4794K

DIN No.:

01184179

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24116PN2003PLC017746	LOKMANGAL SUGAR ETHENOL & CO-GENERATION INDUSTRIES LIMITED	Director	05/12/2006	05/12/2006	-	Active	NO
2	U36910PN2007PTC130282	LOKMANGAL MAULI JEWELLERS PRIVATE LIMITED	Director	08/06/2007	08/06/2007	-	Active	NO
3	U15421PN2007PLC130585	LOKMANGAL MAULI INDUSTRIES LIMITED	Director	20/08/2007	20/08/2007	-	Active	NO
4	U60232PN2008PTC131938	LOKMANGAL LOGISTICS PRIVATE LIMITED	Director	05/05/2008	05/05/2008	-	Active	NO
5	U01122PN1998PLC012974	LOKMANGAL AGRO INDUSTRIES LIMITED	Director	30/09/2009	31/03/2009	-	Active	NO
6	U55101PN2009PTC133967	SHRADDHA RESORTS PRIVATE LIMITED	Additional director	16/08/2010	16/08/2010	-	Active	NO
7	U45203PN2005PTC020584	LOKMANGAL INFRASTRUCTURE PRIVATE LIMITED	Director	30/09/2011	01/03/2011	-	Active	NO
8	U17122PN2011PTC141209	LOKMANGAL FABTEX PRIVATE LIMITED	Director	31/12/2012	12/02/2012	-	Active	NO

Name :

Mr. Manish Subhash Deshmukh

Designation :

Additional Director

Address :

13 Asahydrinagar, Hotgiroad, Solapur - 413004, Maharashtra, India

Date of Birth/Age :

05.11.1984

Date of Appointment :

31.03.2013

PAN No.:

AHZPD7424P

DIN No.:

01184226

Other Directorship:

S.No.	CIN/LLPIN	Name of the Company/ LLP	Current designation of the Director/ Designated Partner	Date of appointment at current designation	Original date of appointment	Date of cessation	Company/ LLP Status	Defaulting status
1	U24116PN2003PLC017746	LOKMANGAL SUGAR ETHENOL & CO-GENERATION INDUSTRIES LIMITED	Director	04/03/2003	04/03/2003	-	Active	NO
2	U15421PN2007PLC130585	LOKMANGAL MAULI INDUSTRIES LIMITED	Director	20/08/2007	20/08/2007	-	Active	NO
3	U60232PN2008PTC131938	LOKMANGAL LOGISTICS PRIVATE LIMITED	Director	05/05/2008	05/05/2008	-	Active	NO
4	U21011PN2008PLC132485	LOKMANGAL PRINT-N-PACK LIMITED	Director	23/07/2008	23/07/2008	-	Active	NO
5	U17122PN2011PTC141209	LOKMANGAL FABTEX PRIVATE LIMITED	Director	28/10/2011	28/10/2011	-	Active	NO
6	U24119PN2010PLC136014	LOKMANGAL ORGANICS RESEARCH AND DEVELOPMENT LIMITED	Director	20/03/2012	20/03/2012	-	Active	NO
7	U15203PN1998PLC012973	LOKMANGAL PRODUCTS LIMITED	Additional director	16/10/2013	09/10/2012	-	Active	NO
8	U01122PN1998PLC012974	LOKMANGAL AGRO INDUSTRIES LIMITED	Additional director	31/03/2013	31/03/2013	-	Active	NO

Name :

Mr. Parag Suresh Patil

Designation :

Director

Address :

A 5/7, Suncity, Near Jam Mill Compound, Laxmi Peth Damani Nagar, Solapur, 413001, Maharashtra, India

Date of Birth/Age :

04.11.1980

Date of Appointment :

30.09.2010

PAN No.:

AMZPP5693B

DIN No.:

02943511

Name :

Mr. Vaijinath Nagappa Lature

Designation :

Director

Name :

Mr. Anil Vasantrao Pande

Designation :

Director

Name :

Mr. Shahaji Gulchand Pawar

Designation :

Director

Name :

Mr. Guranna Apparao Teli

Designation :

Director

Name :

Mrs. Smita Subhash Deshmukh

Designation :

Director

KEY EXECUTIVES

Name :	Mr. Mahendra
Designation :	Executive

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on: 30.09.2014

SHAREHOLDER FILE ARE ATTACHED

Equity Share Break up (Percentage of Total Equity)

As on: 30.09.2014

Category	Percentage
Bodies corporate	0.01
Directors or relatives of Directors	14.52
Other top fifty shareholders	0.07
Other	85.40
Total	100.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in manufacturing of sugar, distillery products.

Products :

Item Code No.	Product Description
17011190	Other-White Crystal Sugar
23032000	Beet-pulp, bagasse and other waste of sugar manufacture Beet-pulp, bagasse and other waste of sugar manufacture

Brand Names :

Not Available

Agencies Held :

Not Available

Exports :

Products :

Finished Goods

Countries :

Tanzania

Kenya

Imports :

Products :

Raw Material

Countries :

China

Terms :

Selling :

L/C and Cheque

Purchasing :

L/C and Cheque

PRODUCTION STATUS NOT AVAILABLE

GENERAL INFORMATION

Suppliers :

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

Customers :

Wholesalers and Retailers

Reference :	Not Divulged
Name of the Person :	Not Divulged
Contact No.:	Not Divulged
Since How Long Known :	Not Divulged
Maximum Limit Dealt :	Not Divulged
Experience :	Not Divulged
Remark:	Not Divulged

No. of Employees :

800 (Approximately) (Office)

Bankers :

IDBI Bank Limited, Tirhe, Solapur - 413002, Maharashtra, India

Bank Name	State Bank of India
Branch	Mumbai – 40005, Maharashtra, India
Person Name (With Designation)	Not Divulged
Contact Number	Not Divulged
Name of Account Holder	Not Divulged
Account Number	115
Account Since (Date/Year of Account Opening)	Not Divulged
Average Balance Maintained (If Possible)	Not Divulged
Credit Facilities Enjoyed (If any)	Not Divulged
Account Operation	Not Divulged
Remarks (If any)	Not Divulged

Facilities :

Secured Loan	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Long-term Borrowings
Rupee term loans from banks	421.287	164.780
Loans and advances from others	349.198	199.198
Short-term borrowings
Loans repayable on demand from banks	463.959	787.752
Total	1234.444	1151.73

Financial Institution :	Ministry of Consumer Affairs Food and Public Distribution Department of Food and Public Distribution Krishi Bhavan, New Delhi - 110001, Delhi, India
Auditors :
Name :	Dhananjay Walke Chartered Accountants
Address :	65/20, Krutanjali, 1St Floor, Law College Road, Shangarila Restaurant Lane, Erandwane, Pune - 411 004, Maharashtra, India
PAN N Income-tax PAN of auditor or auditor's firm :	AAUPW4936F
Memberships :	Not Available
Collaborators :	Not Available
Associates:	Lokmangal Mauli Industries Limited Lokmangal Sugar Ethenol & Co-Generation Industries Limited
Enterprises which are owned, or have significant influence of or are partners with Key management personnel and their relatives	Lokmangal Jeevak Hospital and Research Centre Lokmangal Mauli Jewellers Private Limited Lokmangal Print-N-Pack Limited Subhash Deshmukh and Company Lokmangal Bank Lokmangal Multi State Credit Society Lokmangal Infrastructure Private Limited

CAPITAL STRUCTURE

As on 31.09.2014

Authorized Capital:

No. of Shares	Type	Value	Amount
11,000,000	Equity Shares	Rs.100/- each	Rs. 1100.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
9,996,670	Equity Shares	Rs.100/- each	Rs. 999.667 Million

FINANCIAL DATA

[all figures are in Rupees Million]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS	31.03.2014	31.03.2013	31.03.2012
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	999.667	999.667	999.667
(b) Reserves & Surplus	226.451	219.839	127.848
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	95.849	10.338
Total Shareholders’ Funds (1) + (2)	1226.118	1315.355	1137.853
(3) Non-Current Liabilities
(a) long-term borrowings	770.484	363.978	291.172
(b) Deferred tax liabilities (Net)	97.762	89.782	50.605
(c) Other long term liabilities	17.856	17.856	10.005
(d) long-term provisions	0.000	0.000	0.000
Total Non-current Liabilities (3)	886.102	471.616	351.782
(4) Current Liabilities
(a) Short term borrowings	471.884	791.230	776.145
(b) Trade payables	443.623	326.680	353.969
(c) Other current liabilities	393.271	541.551	370.934
(d) Short-term provisions	17.694	31.749	37.475
Total Current Liabilities (4)	1326.472	1691.210	1538.523
TOTAL	3438.692	3478.181	3028.158
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	1166.758	1183.934	1135.547
(ii) Intangible Assets	0.000	0.000	0.000
(iii) Capital work-in-progress	0.000	0.000	2.799
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	391.606	382.106	231.606
(c) Deferred tax assets (net)	0.000	0.000	0.000
(d) Long-term Loan and Advances	101.104	112.734	101.290
(e) Other Non-current assets	0.000	0.000	0.000
Total Non-Current Assets	1659.468	1678.774	1471.242
(2) Current assets
(a) Current investments	16.988	205.534	488.797
(b) Inventories	844.207	954.828	762.988
(c) Trade receivables	38.262	0.000	0.854
(d) Cash and cash equivalents	427.464	134.242	52.026
(e) Short-term loans and advances	449.540	500.386	244.213
(f) Other current assets	2.763	4.417	8.038
Total Current Assets	1779.224	1799.407	1556.916
TOTAL	3438.692	3478.181	3028.158

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2014	31.03.2013	31.03.2012
	SALES
		Income	1953.264	2548.827	2465.894
		Other Income	22.955	37.232	39.530
		TOTAL (A)	1976.219	2586.059	2505.424
Less	EXPENSES
		Cost of Materials Consumed	1194.329	2140.563	1620.784
		Purchases of Stock-in-Trade	24.741	41.602	116.010
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	279.340	(194.382)	92.748
		Extraordinary items	7.718	0.000	0.000
		Employees benefits expense	90.731	81.776	76.610
		Other expenses	123.046	133.148	108.217
		TOTAL (B)	1719.905	2202.707	2014.369
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		256.314	383.352	491.055
Less	FINANCIAL EXPENSES (D)		87.662	128.250	229.183
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		168.652	255.102	261.872
Less/ Add	DEPRECIATION/ AMORTISATION (F)		149.671	158.071	146.553
	PROFIT BEFORE TAX (E-F) (G)		18.981	97.031	115.319
Less	TAX (H)		12.369	43.660	17.753
	PROFIT AFTER TAX (G-H) (I)		6.612	53.371	97.566
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	54.449	88.926	400.269
	TOTAL EARNINGS		54.449	88.926	400.269
	IMPORTS
		Raw Materials	0.000	3.090	0.000
	TOTAL IMPORTS		0.000	3.090	0.000
	Earnings Per Share (Rs.)		0.66	5.34	9.76

KEY RATIOS

PARTICULARS		31.03.2014	31.03.2013	31.03.2012
Net Profit Margin (PAT / Sales)	(%)	0.34	2.09	3.96
Operating Profit Margin (PBIDT/Sales)	(%)	13.12	15.04	19.91
Return on Total Assets (PBT/Total Assets}	(%)	0.62	3.13	4.13
Return on Investment (ROI) (PBT/Networth)		0.02	0.07	0.10
Debt Equity Ratio (Total Debt /Networth)		1.01	0.88	0.94
Current Ratio (Current Asset/Current Liability)		1.34	1.06	1.01

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

DEBT EQUITY RATIO

Particular	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Share Capital	999.667	999.667	999.667
Reserves & Surplus	127.848	219.839	226.451
Share Application money pending allotment	10.338	95.849	0.000
Net worth	1137.853	1315.355	1226.118
long-term borrowings	291.172	363.978	770.484
Short term borrowings	776.145	791.230	471.884
Total borrowings	1067.317	1155.208	1242.368
Debt/Equity ratio	0.938	0.878	1.013

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2465.894	2548.827	1953.264
		3.363	(23.366)

NET PROFIT MARGIN

Net Profit Margin	31.03.2012	31.03.2013	31.03.2014
	(Rs. In Million)	(Rs. In Million)	(Rs. In Million)
Sales	2465.894	2548.827	1953.264
Profit	97.566	53.371	6.612
	3.96%	2.09%	0.34%

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	Yes
21]	Market information	--
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS:

BOMBAY HIGH COURT
PRESENTATION DATE: 18/04/2013
LODGING NO.:CEXAL/110/2013 FILLING DATE: 18.04.2013 REG. NO.: CEXA/102/2013 REG. DATE: 03.07.2013
PETITIONER	THE COMMISSIONER CENTRAL EXCISE
REPSONDENT:	LOKMANGAL AGRO INDUSTRIES LIMITED
PETN. ADV.:	JITENDRA B MISHRA
DISTRICT:	MUMBAI
BENCH	DIVISION
STATUS	ADMITTED (UNREADY)	CATEGORY: CENTRAL EXCISE APPEAL (CEXA)
LAST DATE:	03.04.2014	STAGE: FRESH ADMISSION
LAST CORAM	HON’BLE SHRI JUSTICE S.C. DHARMADHIKARI HON’BLE SHRI JUSTICE G.S. KULKARNI
ACT:	CENTRAL EXCISE AND SALT ACT UNDER SECTION: 35G

REVIEW OF OPERATIONS:

During the year, the company has achieved comparatively less targets by manufacturing and sales of sugar and other by-products. The operational income earned by the Company is from sale of sugar and by-products of sugar. Due to certain reasons like lack of agricultural produce and high operational costs, the revenue achieved is comparatively less than current year. The Company has recorded operational income of Rs. 1953.300 Million Profit after tax has earned Rs. 6.600 Million

UNSECURED LOAN

Particular	31.03.2014 (Rs. in Million)	31.03.2013 (Rs. in Million)
Short-term borrowings
Loans repayable on demand from banks	7.925	3.478
Total	7.925	3.478

INDEX OF CAHREGS:

S. NO.	CHARGE ID	DATE OF CHARGE CREATION/MODIFICATION	CHARGE AMOUNT SECURED	CHARGE HOLDER	ADDRESS	SERVICE REQUEST NUMBER (SRN)
1	10420171	16/04/2013	299,600,000.00	MINISTRY OF CONSUMER AFFAIRS FOOD AND PUBLIC DISTR  IBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION	KRISHI BHAVAN, NEW DELHI - 110001, INDIA	B73319824
2	10408255	12/04/2014 *	250,000,000.00	TJSB SAHAKARI BANK LIMITED	TJSB SAHAKARI BANK LIMITED, WARD NO. 36, WAGLE INDUSTRIAL ESTATE, THANE W, THANE - - 400604, MAHARASHTRA, INDIA	C03024924
3	10158053	18/10/2011 *	2,115,500,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH, 2ND FLOOR, THE ARCADE, WORLD TRADE CENTRE, CUFFE PARADE, COLABA, MUMBAI - 400005,  MAHARASHTRA, INDIA	B25089723
4	10059198	17/12/2014 *	1,832,000,000.00	STATE BANK OF INDIA	INDUSTRIAL FINANCE BRANCH,THE ARCADE 2ND FLOOR, WORLD TRADE CENTRE, COLABA, MUMBAI - 400005, MAHARASHTRA, INDIA	C46510145
5	90093949	17/11/2003	30,000,000.00	THE UNITED WESTERN BANK	BRANCH THIRE TAL., N. SOLAPUR, SOLAPUR, MAHARASHTRA, INDIA	-

* Date of charge modification

FIXED ASSETS:

· Land

· Building

· Plant and Machinery

· Furniture and Fitting

· Vehicles

· Office Equipments

· Computer Systems

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report: No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.64.19
UK Pound	1	Rs.100.58
Euro	1	Rs.72.08

INFORMATION DETAILS

Information Gathered by :	MNJ
Analysis Done by :	SUM
Report Prepared by :	MTN

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	4
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	4
--PROFITABILITY	1~10	2
--LIQUIDITY	1~10	3
--LEVERAGE	1~10	3
--RESERVES	1~10	2
--CREDIT LINES	1~10	3
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		30

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.